DVHC Impact

During 2013, southeastern Pennsylvania hospitals provided $2.7 billion in free or subsidized health care, medical education and research, and community improvement. Having clear and uniform criteria for not-for-profit status determined by the legislature allows southeastern PA hospitals to continue to provide this level of community services. DVHC is working with a coalition of Philadelphia-based not-for-profits to protect their tax-exempt status.

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HAPAC and HAPAC-Federal are the political action committees of HAP. Participation in HAPAC helps HAP communicate to lawmakers the vital role that health care facilities and their employees play in their communities every day. Learn more

Tax-Exempt Status

Many Pennsylvania hospitals qualify for federal and state tax-exempt status. In return for being classified as tax-exempt, Pennsylvania hospitals provide their communities with medical and wellness services that would otherwise need to be delivered by government and taxpayers.

Provisions of the Affordable Care Act place additional requirements on hospitals seeking to maintain federal tax exemption. In addition, a 2012 state Supreme Court decision has made Pennsylvania’s not-for-profit hospitals and health systems vulnerable to challenges to their exemption from state and local taxes.

In addition to helping its members to comply with the Affordable Care Act, HAP is working on the state legislative front to uphold the tenets of Pennsylvania’s vanguard Institutions of Purely Public Charity Act (Act 55 of 1997) to reduce the likelihood of challenges to hospitals’ tax status. Doing so will free essential hospital resources to focus on their patients and communities.